Summer Budget 2010 Introduction Income Tax Tax Credits and Benefits National Insurance Contributions Employees Savings Capital Gains Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Insurance Premium Tax Other Measures Tax Tables National Insurance

Other Measures Penalties for late filing and payment The March Budget included an announcement that HMRC is working on the reform of penalties for late filing of returns and payment of tax. This is part of the ongoing rationalisation of rules which formerly applied to different taxes administered by different departments (e.g. income taxes by the Inland Revenue and VAT by Customs & Excise). Several recent Finance Acts have reformed and rationalised interest on late tax payments and penalties for late filing and payment. The latest Budget confirms that these measures will be extended to VAT and other indirect taxes, but does not set out a detailed timetable. Although the penalties for lateness in direct taxes are generally harsher than what they are replacing, the penalties under the existing default surcharge regime for VAT will be reduced after the changes. Tax Trap Beware: the new penalties may be expensive if you are not careful – and prompt! Anti-avoidance There was less detail on anti-avoidance provisions than is usual in a Budget, presumably because HMRC included most of the measures they wanted in March. However, there is a proposal to clamp down on the use of trusts and other vehicles to avoid, defer or reduce liabilities to income tax and NICs on earnings, or to seek to avoid restrictions on pensions tax relief. The Government is considering measures to close down these schemes, and intends to introduce new legislation to take effect from 6 April 2011. Those who use these planning devices have been warned. Bank levy After Labour's tax on bankers' bonuses in 2009/10, the new administration is introducing a levy on the balance sheets of large banks. It follows a joint policy statement issued with the French and German governments – Mr Osborne is keen to ensure that such a levy does not simply drive the banks to set up their operations in countries that do not charge similar taxes. It remains to be seen whether the levy will raise as much as he hopes.